Investment Opportunities: The Indian Market

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RELATIONSHIP BETWEEN INDIA AND SWEDEN.
Sweden was one of the countries that accepted and recognized India’s independence from
its colonizers Britain, back in 1947. Two years later, they formally established diplomatic
relations, that would see India set up an embassy in Stockholm, and a similar one in New Delhi,
as well as honorary consulates in Chennai, Kolkata and Mumbai for Sweden. This has seen
Indian citizens work and reside in the country with over 9000 people, fully employed, or in
business fields. There has been over $2 billion traded between the two countries to date. Through
a meeting between the Indian and Sweden prime-ministers back in 14th February 2016, there was
an endorsement to the creation of the India-Sweden Business Leader Round Table, which would
see both countries cooperate in certain areas of trade. The two countries have never had a solid
bilateral signed trade agreement but have been able to cement several ties in matters
infrastructure and energy. Also, there have been several dialogue mechanisms and agreements
like Avoidance of Double Taxation and Bilateral Protection agreement (BIPA), that continue to
enable economic collaboration between the two countries. (BBC News 1).
This common goodwill between both countries and the established economic ties
between them, create a vast opportunity for IKEA in India. They enjoy the freedom of exporting
products into the country into India without facing double taxation and from the trust established
between both countries, they enjoy a free trading market where they are guaranteed a loyal
customer base that will increase their sales and improve on their profits. More to that, India is
the Asian biggest trading market. Similarly, there isn’t an established furniture established
market in India from Sweden and therefore, they walk into a market with no competition in
Sweden and minimal competition in India. (Government of Sweden 2).
SWOT ANALYSIS IN THE INDIAN MARKET

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Strengths Weaknesses
Vast and influential presence in private and
public sectors.
Increase in industries also brings in its fair
share of problems that greatly affect the
market like: counterfeit products.
A huge demand for domestic goods especially
industrial goods.
Many outdated labor laws affecting trades
Low cost human resources. Weak regulatory systems that check misuse of
power.
The government is thrust on reforms and
liberalization that continue to experience
more change.
A high dependency on subsidies
Increase in real assets. Inadequate and poor-quality infrastructure
that affect trade timelines.
Opportunities Threats.
Vast exports in the country have extended
more opportunities to be explored.
Heavy competition from other developing
markets like china.
An international recognition of the Indian
market
Constant power crisis experiences due to the
growth in the manufacturing sector.
An increase in overseas investments and
acquisition by the Indian firms.
Informal sector is largely categorized by poor
working conditions and wages.
Major growth opportunities. Labor issues are affecting trade dialogues
alongside high corruption rates in the country.
Global dimensions that a manager should focus on that define the entry strategy.
With real estate being a big gainer in the recent trades, the IKEA company has great
chances of excelling in the India market. Making partnerships with key real estate developers
and home sellers would help the company infiltrate the market and create a name for the
company as well. This brings the company closer to the customers and consumers, where they
can identify the consumer needs and develop strategies to meet them. There is need as a
manager, to place more concentration in the social media market. India is populated majorly by
the millennials whose world is largely defined by social media. Appealing to that market will
improve performance for the company and increase on their benefits. It would also make the
company dependable (Husain 2).